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Ambitious pledges to make the city more affordable for residents propelled progressive candidate the incoming mayor to his surprising win on election day. Included are free buses, childcare for all, and a massive expansion in affordable homes.

However, making the city cost-effective for inhabitants is an expensive government task, and many economists and politicians to Mamdani’s right say he confronts numerous hurdles to meaningfully deliver on his signature ideas.

Further complicating the situation is the federal administration, which will likely withhold financial support for the city in an attempt to undermine Mamdani and open up budget holes that make it more difficult to fund fresh initiatives.

Additionally, the city must secure state government authorization to adjust many income sources. An analyst pointed to the state legislature stopping the city from increasing dog licensing fees in a prior year due to a dispute between the then mayor and a state representative.

“The dramatic way of putting it is New York City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” the expert said.

However, he and other experts point to tailwinds: Mamdani’s proposals are widely supported and would address fundamental issues. The Democratic party now hold large majorities in the state government, and some see financial and viable routes to making the proposals reality.

In what ways might Mamdani finance his ambitious agenda? Here’s a detailed look by revenue source and initiative.

Raising Revenue

The Mamdani campaign estimates it could raise about $10bn by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Critics say businesses and the high-earners will move away, but that is contradicted by reliable studies. Moreover, the business levy is on earnings made in the state regardless of where a company is located, making the argument at least partially irrelevant.

Business Levy Increase

Mamdani estimates a state tax increase between 7.25% and 11.5% on corporate profits would produce about five billion dollars, much of which would be directed to the city. State leaders would have to approve the proposal. State lawmakers have previously backed similar proposals, but the governor is against raising taxes.

However, the governor supports universal childcare, a very popular proposal because childcare is widely viewed as too expensive, said one policy director. It would be difficult for centrist lawmakers to “oppose enacting a historical program”, he added. “Nobody argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, the expert said, has been a leader like Mamdani who says: “Yes, it costs money, and we will raise taxes to get it done.”

Increasing Taxes on the Wealthy

The proposal calls for raising $4bn with a two percent hike on those earning more than $1m each year. Although it’s a municipal levy, the state legislature must approve the increase, and the idea is generally resisted by moderate lawmakers.

However there is a feasible route, the expert said. Increasing revenue on the rich is broadly popular and, similar to the business tax hike, allocating the proceeds to fund favored initiatives helps to sell in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on regulated housing is the simplest to enforce – it’s minimally costly. But, a halt must be authorized by the rent guidelines board, and there may not be enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects free buses will require at least $700m, which factors in an evasion rate of forty-eight percent. Analysts say Mamdani could likely cover the expense by streamlining or reducing additional services in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A pilot program for five public food markets that would be established in neglected “food deserts” is projected at sixty million dollars and could additionally be funded by shifting priorities in the $116bn spending plan.

Constructing Low-Cost Homes Units

Numerous commentators to the right of Mamdani have written off the proposal to invest about one hundred billion dollars developing two hundred thousand low-income homes over 10 years, mainly because it would necessitate massive debt. He clarified those arguing against this point mostly overlook that the initiative is does not involve to take on $100bn immediately – the liability would be accrued and repaid in tranches over several government terms.

He emphasized the proposal is not for free housing, but cost-effective residences that would produce income to reduce debt. Furthermore, the projects could in part be funded by private investment.

“This is how the proposal adds up,” he concluded.

Childcare for All

Establishing universal childcare would cost between $2.5bn and $12bn by most estimates, based on whether it is a city or state program and additional variables. Financing is the big question mark – can the corporate and wealth taxes be approved in Albany? One analyst said he anticipated some compromise, as often happens with large-scale plans.

“Proposals that Mamdani pledged will likely be scaled back,” he remarked. “And the state leader’s expressed opposition to revenue hikes could confront practical limits – she likely can’t get the things she wants on the spending side without compromise on the tax side.”